Fulton Financial Corp (NASDAQ:FULT) stock fell 7.50% (As on January 18, 11:22:38 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 22. The company has reported net income available to common shareholders of $79.3 million for the fourth quarter of 2022, an increase of 16.0%, in comparison to the third quarter of 2022. Net interest income for the fourth quarter of 2022 was $225.9 million, an increase of $10.3 million in comparison to the third quarter of 2022. The net interest margin for the fourth quarter of 2022 increased 15 basis points, to 3.69%, in comparison to 3.54% in the third quarter of 2022. The linked-quarter increase in net interest income was primarily due to rising interest rates resulting in increases in interest income from net loans of $33.8 million. An increase in the average balances for net loans of $440.7 million also contributed to the increase in interest income.

FULT in the fourth quarter of FY 22 has reported the adjusted earnings per share of 48 cents, missing the analysts’ estimates for the adjusted earnings per share of 50 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $284.5 million in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $285.4 million.

Moreover, for the fourth quarter of 2022, net interest income was $225.9 million, an increase of $60.3 million, or 36.4%, in comparison to the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest income from net loans, investment securities and other interest-earning assets of $81.6 million, $5.0 million and $3.5 million, respectively. Increases in the average balances for net loans and investment securities of $1,784.0 million and $408.4 million, respectively, driven in part by the Prudential Bancorp acquisition, also contributed to the increase in interest income. Interest expense from interest-bearing liabilities for the fourth quarter of 2022 increased by $29.8 million to $41.9 million in comparison to $12.1 million in the fourth quarter of 2021 primarily driven by rising interest rates resulting in increases in interest expense from interest-bearing deposits and borrowings of $16.5 million and $13.3 million, respectively. An increase in the average balance for borrowings of $928.4 million in the fourth quarter of 2022 in comparison to the fourth quarter of 2021 also contributed to the increase in interest expense.